Sunk cost of a concrete mixer

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Jhun Vert
Jhun Vert's picture
Sunk cost of a concrete mixer

A concrete mixer was bought for P30,000 six years ago. It will have a salvage value of P3,000 four years from now. It is sold now at P8,000. What is the sunk cost if the depreciation used is sinking fund method at 6%? Hint: sunk cost is the difference between the book value and the selling price.

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